Question: Moyle Co. acquired a machine on January I. Problem 6.26 2016, at a cost of $2.400.000. The machine is expected to have a five-year useful
Moyle Co. acquired a machine on January I. Problem 6.26 2016, at a cost of $2.400.000. The machine is expected to have a five-year useful life. 1.0 3 with a salvage value of $150.000. The machine is capable of producing 300.000 units of product in its lifetime. Actual production was as follows: 60.000 units in 2016: 40.000 units in 2017: 80,000 units in 2018; 50,000 units in 2019: and 70.000 units in 2020.
Required:
Identify the depreciation method that would result in each of the following annual credit amount patterns to accumulated depreciation. If a declining-balance method is used, indicate the percentage (150% or 200%). (What do the amounts shown for each year represent?)
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Accumulated Accumulated Depreciation 960,000 12/31/16 576,000 12/31/17 345,600 12/31/18 207,360 12/31/19 124,416 12/31/20 450,000 12/31/16 450,000 12/31/17 450,000 12/31/18 450,000 12/31/19 450,000 12/31/20 Accumulated Depreciation Accumulated Depreciation 450,000 12/31/16 300,000 12/31/17 600,000 12/31/18 375,000 12/31/19 525,000 12/31/20 720,000 2/31/16 504.000 12/31/17 352.800 12/31/18 246,960 12/31/19 172,872 12/31/20
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